Articles for Legal & Accounting Experts

Review of Year-End Tax and Financial Statement Preparation

Wednesday, February 01, 2012
Year-end at an automotive dealership is undoubtedly the most stressful time the accounting office experiences. Accountant David Keller discusses measures dealers can take to lessen the stress at year-end and prepare for their CPA’s year-end fieldwork.

When the Cops Aren’t the Cops

Thursday, January 26, 2012
Recent fraudulent emails to dealerships purporting to be from the FTC prompt attorney Tom Hudson to issue a word of caution to dealers: Make sure any "authorities" who approach the dealership are the real thing before taking any action.

Arbitration Agreements Can be Helpful in Class Action Lawsuits

Monday, December 26, 2011
The best first line of defense against class action suits is the practice of requiring consumers to sign mandatory arbitration agreements as part of the car purchase and finance transactions they enter into. Attorney Thomas Hudson provides an example of how the use of arbitration agreements saved the day when the class action lawyers came calling.

Identifying Your BHPH and RFC Trends

Wednesday, December 07, 2011
Accountant David Keller, CPA and CFE, details how buy here pay here sales and collections and having a related finance company (RFC) can complicate accounting.

Flying Under the Radar

Wednesday, November 30, 2011
Dealers who ignore rules and regulations they’re required by law to comply with and instead hope to fly under the radar unnoticed by the Federal Trade Commission and Consumer Financial Protection Bureau might want to ask themselves the following questions posed by Attorney Tom Hudson in this article.

Making a List and Checking it Twice

Sunday, November 27, 2011
Santa isn’t the only one making a list and checking it twice this time of year. The CFPB and the FTC are making lists that will be used to determine who is naughty and who is nice. Attorney Nicole Munro poses some questions dealers should consider to put together their own compliance checklists.

Third-Party Relationships Require Close Attention to Detail

Thursday, November 10, 2011
There are risks involved with all third-party relationships. Chip Zyvoloski, senior attorney within the Indirect Lending business at Wolters Kluwer Financial Services, explains that to protect the dealership’s reputation, dealers should complete due diligence on your third-party vendors.

Cobweb Compliance

Friday, October 28, 2011
Attorney Thomas Hudson poses two scenarios about how dealers comply with the Safeguarding Rule. One scenario is about a dealer who initially had good intentions but allowed compliance cobwebs to build up, the other is about a dealer who implements and maintains a compliant process.

Disclosures in Auto Finance - Lesson 2: Application Disclosures

Tuesday, October 25, 2011
Attorney Nicole Munro discusses disclosures required by the Equal Credit Opportunity Act and its implementing Regulation B, along with the Fair Credit Reporting Act, when a consumer applies for secured credit.

Inventory Management Is Really Cash Management

Wednesday, October 05, 2011
Do you watch and calculate how many times your inventory turns each year? Do you know what your return on inventory investment is? David Keller, automotive industry accounting expert, explains how to determine these things and more.

Disclosures in Auto Finance - Lesson 1: Advertising Disclosures

Thursday, September 29, 2011
Attorney Nicole Munro explains advertising disclosures required by the Truth-in-Lending Act (TILA) and Regulation Z.

Best Practice in One State Can Lead to Jail in Another

Friday, September 23, 2011
Attorney Tom Hudson discusses how best practices in some dealerships can be prohibited in other dealerships due to state laws. One example he mentions is bird-dog programs.

Wrong Assumption on Dealer Participation Leads to Faulty “Study”

Wednesday, August 24, 2011
Thomas Hudson of Hudson Cook LLC, discusses the Center of Responsible Lending’s report entitled, "Under the Hood: Auto Loan Interest Rate Hikes Inflate Consumer Costs and Loan Losses."

Identify Savings in These Dealership Operations

Monday, August 15, 2011
Expert CPA David Keller details seven different areas dealers should review annually to look for possible savings.

Dealers, Be Prepared to Defend Outside Your State

Monday, July 18, 2011
Industry Attorney Tom Hudson outlines how a Georgia auto dealer was sued in Pennsylvania court.

Check State Law Before Charging Fees

Wednesday, June 22, 2011
Attorney Thomas Hudson shares insightful correspondence he had with another lawyer who represents dealers regarding finance charges, TILA, Regulation Z and more.

Who Is Watching the Parts Department?

Friday, June 17, 2011
The parts department is the only department in the dealership that can place an order for almost any type of part and never be questioned about it. CPA David Keller explains why dealers should look at their parts departments to see how it’s really being managed.

Dealer Practices to be Scrutinized by the FTC and CFPB

Thursday, May 26, 2011
Industry Attorney Thomas Hudson reports on information about what the Federal Trade Commission (FTC) and the newly-created Consumer Financial Protection Bureau (CFPB) intend to enforce.

Prevent Dealership Fraud with Continuous Monitoring

Monday, May 23, 2011
Author Brian Shackelford explains the difference between continuous auditing and continuous monitoring and discusses the use of continuous monitoring to ensure the effectiveness of internal controls and prevent fraud inside the dealership.

Adding Profit Centers to Your Dealership

Monday, April 18, 2011
Industry expert, David Keller, discusses two profit centers dealers can add to dealerships to make 2011 a more profitable year—a detail department and a BHPH operation. He also discusses when BHPH dealers should set up a related finance company (RFC).

Copyright 2011 Auto Dealer Monthly